More Layoffs at Estée Lauder

The Estée Lauder Companies will make more job cuts than initially planned.

The beauty maker and Happi Top 50 Company now estimates it will eliminate 9,000 – 10,000 roles, an increase from 5,800-7,000. More than 70% of the increase is attributable to the reduction in point-of-sale demonstration roles at select unproductive doors in its department store and freestanding store channels, which ELC says is result of the company’s focus towards “high-growth channels.”

This net reduction takes into account the elimination of positions after retraining and redeployment of certain employees in select areas, according to ELC.

Third Quarter Results

The Estée Lauder Companies Inc. today also reported its financial results for the third quarter ended March 31, 2026. Net sales rose 5% to $3.7 billion and organic net sales increased 2%.

Skin care, makeup and hair care net sales were flat, according to the company.

Fragrance net sales increased 10% in the third quarter, driven by double-digit growth from the company’s luxury brands, which grew across all geographic regions.

“Our third quarter results extend strong year-to-date performance, driven by Beauty Reimagined,” said Stéphane de La Faverie, president and CEO. “In the first nine months of fiscal 2026, organic sales for Fragrance rose double-digits, while three of four regions grew, led by high single-digit growth in Mainland China where we outperformed prestige beauty to gain share. With momentum across all five action plan priorities of Beauty Reimagined, today we raised our fiscal 2026 outlook, now expecting organic sales growth at the high-end of the prior range and adjusted operating margin expansion to approach 300 basis points, bolstered in part by adjusted gross margin expansion.”

According to de La Faverie, fiscal 2026 is “promising to be the pivotal year” ELC intended.

“Looking ahead to fiscal 2027, we are confident in our improving trajectory and realizing the benefits of One ELC, especially its One Operating Ecosystem which will be fully deployed. Our preliminary view is to accelerate organic sales growth and for adjusted operating margin to approach 13%, albeit in an uncertain geopolitical and macroeconomic environment,” he said.